Bitcoin hit $50 thousand on trading Sunday. A more than three-month high, after the digital currency hit lows of even under $30 thousand these past months. (Prices in this article refer to the Bitcoin-USD exchange rate)
Last year in April, Bitcoin had risen to $64 thousand before seeing a selling frenzy that dropped its price to lows under $30 thousand. Chinese regulators had a significant share of the fault, as Crypto mining enterprises were forced by their policies- part of the infamous Chinese Crackdown that had effects on most industries- to stop their operations and leave China to settle elsewhere.
However, according to data from Coin Metrics, Bitcoin hit the $50K mark at 10:04 pm ET on Saturday, as the result of a bullish trend that started in mid-July this year. At the time of writing this article Bitcoin-USD exchange was at $49,584 approximately, remaining near the $50K mark.
According to experts, this last boost- that helped not only Bitcoin but Ether too- may be due to two key announcements that have been released starting last week. The first is that Coinbase will be making a purchase of Crypto of up to $500M and will invest 10% of their profits on a Crypto-based portfolio. The second is regarding PayPal adding the feature that allows its users to buy, hold and sell digital currencies in the UK.
Paypal had already launched this feature in the US in Early 2021. They were later allowing their customers to use digital currencies in all their transactions with affiliated sellers.
A growing Asset Class
As the news of Bitcoin being back near highs hit, Cryptocurrency as an asset class amounted in value to $2.18 trillion, having hit the $2 Trillion mark for the first time since last May earlier this month.
Last month the SEC entered a bid to regulate cryptocurrency further as it views the asset class to be full of scams and potential of money laundering. It is expected that as the market value of the asset class as a whole keeps increasing, regulators will be more inclined to follow China and the SEC on regulating all crypto assets.
Despite the mounting risks of new regulations, for the moment, the forecasts remain bullish for most digital currencies.
What does this mean for cryptocurrencies as a whole? Let us know what you think in the comments.
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